Articles 198 and 199 of the Constitution of India: Money Bills in State Legislatures
Articles 198 and 199 form part of the constitutional framework governing financial legislation in the States. Article 198 prescribes the special procedure for a Money Bill in a State having a Legislative Council, while Article 199 defines what qualifies as a Money Bill and provides for certification by the Speaker.
Article 198 - Special procedure in respect of Money Bills
Meaning: Article 198 gives the Legislative Assembly the primary constitutional role in the passage of a Money Bill in a bicameral State Legislature. The Legislative Council cannot introduce a Money Bill and its recommendations do not bind the Assembly.
Article 198(1)
A Money Bill shall not be introduced in a Legislative Council.
Article 198(2)
After a Money Bill has been passed by the Legislative Assembly of a State having a Legislative Council, it is transmitted to the Legislative Council for its recommendations. The Council must return it within fourteen days from receipt. The Assembly may accept or reject all or any of those recommendations.
Article 198(3)
If the Legislative Assembly accepts any recommendation of the Legislative Council, the Bill is deemed to have been passed by both Houses with the amendments recommended by the Council and accepted by the Assembly.
Article 198(4)
If the Legislative Assembly does not accept the Council's recommendations, the Bill is deemed to have been passed by both Houses in the form in which the Assembly passed it, without the recommended amendments.
Article 198(5)
If the Legislative Council does not return the Money Bill within fourteen days, the Bill is deemed to have been passed by both Houses at the end of that period in the form passed by the Legislative Assembly.
Article 199 - Definition of Money Bills
Meaning: Under Article 199(1), a Bill is a Money Bill for this Chapter only when it contains provisions dealing exclusively with one or more of the constitutionally specified financial matters.
Matters covered by Article 199(1)
- Imposition, abolition, remission, alteration or regulation of any tax.
- Regulation of State borrowing or guarantees, or amendment of the law concerning financial obligations undertaken or to be undertaken by the State.
- Custody of the Consolidated Fund or Contingency Fund of the State, including payment into or withdrawal from such Funds.
- Appropriation of money out of the Consolidated Fund of the State.
- Declaration of expenditure as expenditure charged on the Consolidated Fund of the State, or an increase in such expenditure.
- Receipt of money on account of the Consolidated Fund of the State or the public account of the State, or the custody or issue of such money.
- Any matter incidental to the matters specified above.
Article 199(2) - Matters that do not by themselves make a Bill a Money Bill
A Bill is not a Money Bill merely because it provides for fines or other pecuniary penalties, licence fees, fees for services rendered, or taxation by a local authority or local body for local purposes.
Article 199(3) - Decision of the Speaker
If a question arises whether a Bill introduced in the Legislature of a State having a Legislative Council is a Money Bill, Article 199(3) provides that the decision of the Speaker of the Legislative Assembly thereon shall be final.
Article 199(4) - Speaker's certificate
Every Money Bill transmitted to the Legislative Council under Article 198, and every such Bill presented to the Governor for assent under Article 200, must carry the Speaker's signed certificate that it is a Money Bill.
What qualifies as a Money Bill under Article 199?
The defining requirement is that the Bill contain only provisions dealing with the matters listed in Article 199(1)(a) to (g). The provision therefore focuses not merely on whether a Bill has financial consequences, but on whether its provisions fall within the specified constitutional categories.
Legislative Assembly and Legislative Council: key differences for a Money Bill
| Issue | Legislative Assembly | Legislative Council |
|---|---|---|
| Introduction of Money Bill | Money Bill is introduced in the Assembly, subject to other applicable constitutional requirements. | Cannot introduce a Money Bill. |
| After Assembly passes the Bill | Sends it to the Council for recommendations. | May recommend changes. |
| Time available | May act on recommendations returned by the Council. | Must return the Bill within fourteen days. |
| Recommendations | May accept or reject all or any recommendations. | Recommendations are not binding on the Assembly. |
| Money Bill certification | Speaker certifies the Bill as a Money Bill. | No corresponding certification power under Article 199. |
Related constitutional provisions
Articles 198 and 199 should be read with the wider State legislative procedure in Part VI of the Constitution, including Articles 196 and 197 on introduction and passing of Bills and the powers of the Legislative Council in relation to Bills other than Money Bills, and Article 200 on assent to Bills.
Official constitutional resources
For authoritative text and subsequent constitutional updates, readers should verify the current Constitution from the Legislative Department, Ministry of Law and Justice, Government of India, or India Code.
Note: This page explains the constitutional provisions for general legal information. For an official or litigation-specific interpretation, refer to the current constitutional text and applicable judicial decisions.